cperciva
02-01-2002, 08:45 AM
Amidst the constant debates over whether hosts are setting their prices too low, I thought it might be interesting to find out what sort of gross margin hosts are making.
Gross margin = ($sales - $costs) / $costs
$costs = Service costs (purchase/rental, bandwidth costs, salaries, CC surcharges, etc), but not including sales costs (advertising etc.)
Incognito
02-01-2002, 03:09 PM
Accounting wise...that calculation is markup %...not gross margin.
Gross Margin = (Sales - Cost) / Sales
Sorry to be technical...but will answer question using your definition.
cperciva
02-01-2002, 06:24 PM
Originally posted by Incognito
Accounting wise...that calculation is markup %...not gross margin.
Um. Yes. Of course it is. I don't know what I was thinking when I wrote that.
Walter
02-01-2002, 06:39 PM
lol, someone answered 100% :cartman:
sqposter
02-02-2002, 02:51 AM
based on asking my clients I have found that under win platforms you could have a peak margin of about 35% to 40%. While the unix platform people can have up to 60%.
-Sqposter / Michael
AH-Tina
02-02-2002, 06:39 PM
I've been in 'the biz' since 1997. We closed out January 2002 with our highest monthly gross income EVER. :D :D :D
--Tina
UmBillyCord
02-02-2002, 07:28 PM
I've been in 'the biz' since 1997. We closed out January 2002 with our highest monthly gross income EVER.
What does this have to do with Margins?
AH-Tina
02-02-2002, 07:32 PM
Originally posted by UmBillyCord
What does this have to do with Margins?
Sorry, I wrote and re-wrote that several times (first time with a big long explanation) - til I screwed it up. I should have said NET.
Also, I was just bragging because I just got done doing the books...and I was extremely happy! (still am!)
--Tina
